IMF Approves Ghana’s Third Review, Unlocking $360 Million in Financial Support
Ghana has achieved another milestone in its efforts to restore economic stability under the $3 billion Extended Credit Facility (ECF) program with the International Monetary Fund (IMF). Following the third review of the program, conducted from September 24 to October 4, 2024, the IMF staff reached a Staff-Level Agreement (SLA) with Ghana. This progress positions the country to receive an additional $360 million, bringing the total disbursed funds under the program to $1.92 billion.
A Strong Economic Recovery
Finance Minister Dr. Mohammed Amin Adam announced the achievement at a joint press briefing with the IMF, emphasizing Ghana’s commitment to fiscal discipline and economic reforms. "We have met all six Quantitative Performance Criteria and, for the first time, all four Indicative Targets under the program," he stated. Notable progress includes achieving higher-than-expected economic growth, with real GDP expanding by 5.8% in the first half of 2024 compared to 2.9% in the same period in 2023. This growth has been fueled by strong performances in sectors such as mining, construction, and communication.
Dr. Amin also highlighted that inflation, which has been a persistent challenge, has started to decline, signaling improved macroeconomic stability. He credited this progress to structural reforms and policy adjustments aimed at debt sustainability, financial sector recovery, and enhanced social protection programs.
IMF’s Endorsement and Future Goals
Stéphane Roudet, IMF Mission Chief for Ghana, praised the country’s strong fiscal performance and progress in debt restructuring. He stressed the importance of maintaining this momentum, particularly during the upcoming election year. "Continued policy and reform implementation will be critical to ensuring long-term macroeconomic stability," Roudet noted. He also underscored the significance of strengthening revenue collection and managing expenditure to support vulnerable populations during the adjustment process.
The Path Forward
The IMF Executive Board is set to meet in December to formally approve the SLA and release the funds. Meanwhile, Ghana remains focused on implementing sound economic policies, ensuring fiscal discipline, and addressing challenges in key sectors such as energy and agriculture, which have been impacted by drought in the northern regions.
This latest achievement demonstrates Ghana’s resilience and commitment to overcoming economic challenges through strategic partnerships and comprehensive reforms.
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